As the number of foreclosures rise across the United States, there has also been a rise in scams by companies who promise they will save homeowners from a foreclosure. Of course, nothing could be further from the truth. Because what these foreclosure rescue scams do is wreck your credit, take your money and to top it off, they wipe out any equity you may still have in your home.
Those involved in foreclosure scams prey on people who may have fallen into arrears on their mortgage payments and so are facing a foreclosure. It’s easy for these scammers to locate potential victims because before a notice of foreclosure is filed, the mortgage holder is required to publish a notice.
Once they’ve picked out a vulnerable person, the scam rescue company gets in touch with the homeowner by phone, email or even with a home visit. It’s important not to be swayed into thinking that because you’ve seen an ad in the paper or on the web, they are aboveboard. And even if they refer to themselves as a foreclosure rescue agency or a mortgage consultant, it doesn’t really prove that they are.
Be extremely cautious of any company offering to negotiate with your lender on your behalf. Check their credentials with the Better Business Bureau and your local police department.
The last thing you need when dealing with a possible foreclosure is to get taken by a scammer. Be cautious and very suspicious of anyone offering to represent you for a fee.
Your best bet to delay or even stop a foreclosure is to get in contact with your mortgage lender to discuss possible solutions. If you have a bit of extra cash, maybe pay down mortgage arrears or get some legal advice, instead of paying somebody to do what you can do yourself.
If you do decide to deal with a third party, there are a few things to be aware of in order to avoid problems.
Get everything in writing and be sure to keep copies of any agreement. Written documents can protect your rights in the event of a problem. Verbal promises are worthless in a court of law.
Even if you are feeling stressed and out of time to resolve your problem, don’t let yourself get rushed into signing a contract or any kind of document. Take time to read and understand everything before you sign.
And don’t sign if it doesn’t make sense. Take it to a financial adviser or an attorney to get advice and explanation. You should be aware of a few things that you probably should never sign.
Do not sign over the deed to your house. By doing that you lose your rights as well as any equity you may have built up. Never, ever sign a document that has blank spaces that could be completed after you sign. And if there are errors on a document, refuse to sign it until corrections have been made.
Don’t put your trust in a foreclosure rescue company to make mortgage payments for you. Pay them directly to your lender yourself.
When you do that, your mortgage holder can see that you are working towards making your payments. And by making payments yourself, you can be assured that all the money is being applied towards your mortgage without fees for the rescue company being taken out first.
Remember the adage that if a thing sounds too good to be true then it probably can’t be true. By following these suggestions, you will be able to avoid being a victim of foreclosure rescue scams.
Protect yourself and your family by finding out how to avoid foreclosure scams. Get answers to foreclosure FAQ so you don’t get ripped off.
Tags: family concerns, family finances, finance personal, Foreclosure, foreclosure homes, foreclosure properties, foreclosure rescue scams, foreclosure scams, Foreclosure/Repossession, General Real Estate Tips, housing, Mortgages, real estate foreclosure consumer resources, repossessed homes